| 3Q05 | IBM Pretax Profitability | Oct-05 | ||||||
| 3Q By Business Segments (e) | ||||||||
| 2005 | 2004 | 2003 | ||||||
| PRETAX PROFIT | Margin | Margin | Margin | |||||
| TOTAL | 2,915 | 2,185 | 2,549 | |||||
| Hardware* | 385 | 7.5% | -18.3% | 471 | 6.3% | 344 | 5.1% | |
| Services | 908 | 8.8% | -0.5% | 913 | 9.1% | 891 | 9.8% | |
| Maintenance (e) | 245 | 17.7% | 0.4% | 244 | 18.3% | 368 | 27.8% | |
| Software | 1,173 | 30.7% | 16.0% | 1,011 | 27.9% | 799 | 23.1% | |
| Enterprise Investments | (39) | -12.9% | -29.1% | (55) | -19.9% | (70) | -26.3% | |
| Global Financing | 363 | 60.5% | 3.4% | 351 | 55.0% | 218 | 30.5% | |
| Total | 2,915 | 13.5% | 15.2% | 2,531 | 10.8% | 2,404 | 11.2% | |
| Business Segments | ||||||||
| Revenue | Pretax Profit | |||||||
| Customer | Internal | 3Q05 | 3Q04 | 3Q05 | Margins | 3Q04 | Margins | |
| Technology | (incl. in Systems) | |||||||
| PCs | 3,313 | 54 | 1.6% | |||||
| Systems & Tech | 4,988 | 268 | 5,256 | 4,382 | 385 | 143.7% | 417 | 9.5% |
| Global Services* | 11,687 | 724 | 12,411 | 12,183 | 1,153 | 159.3% | 1,157 | 9.5% |
| Software | 3,819 | 484 | 4,303 | 5,054 | 1,173 | 242.4% | 1,011 | 20.0% |
| Enterprise Invest. | 284 | 2 | 286 | 259 | (39) | (55) | -21.2% | |
| Global Financing | 599 | 289 | 888 | 943 | 363 | 125.6% | 351 | 37.2% |
| Sub-Total | 21,377 | 1,767 | 23,144 | 26,134 | 3,035 | 14.2% | 2,935 | 11.2% |
| Eliminations | 152 | (1,767) | (1,705) | (120) | (404) | |||
| Total | 21,529 | 21,529 | 24,429 | 2,915 | 13.5% | 2,531 | 10.4% | |
| Source: Annex Research | *Includes maintenance | |||||||